Uneasy Allies in the Grocery Aisle

By STEPHANIE STROM

Published: September 14, 2012

genetically modified foods. That surprises no one, least of all the proponents of the law, which if approved by voters would become the first of its kind in the nation.

But the companies behind some of the biggest organic brands in the country -- Kashi, Cascadian Farm, Horizon Organic -- also have joined the antilabeling effort, adding millions of dollars to defeat the initiative, known as Proposition 37.">

Giant bioengineering companies like Monsanto and DuPont are spending millions of dollars to fight a California ballot initiative aimed at requiring the labeling of genetically modified foods. That surprises no one, least of all the proponents of the law, which if approved by voters would become the first of its kind in the nation.

But the companies behind some of the biggest organic brands in the country -- Kashi, Cascadian Farm, Horizon Organic -- also have joined the antilabeling effort, adding millions of dollars to defeat the initiative, known as Proposition 37.

Their opposition stands in sharp contrast to smaller, independent organic companies, which generally favor labeling products that contain genetically modified organisms, or G.M.O.'s. And it has raised a consumer reaction on social media that has led some of the organic brands to try to distance themselves from their corporate parents.

''We want to be clear that Kashi has not made any contributions to oppose G.M.O. labeling,'' the brand said in a statement issued late last month after its Facebook page was inundated with comments from consumers saying they would no longer buy its products because its corporate owner, the Kellogg Company, has put more than $600,000 into fighting the ballot initiative.

But as recently as last week, consumers were still peppering the sites of Horizon, owned by Dean Foods; the J. M. Smucker Company, which has a number of organic products, and Kashi with expressions of betrayal and disappointment. ''It is unconscionable for you to be funding the effort to defeat Proposition 37,'' one post said.

''Consumers aren't always aware that their favorite organic brands are in fact owned by big multinationals, and now they're finding out that the premium they've paid to buy these organic products is being spent to fight against something they believe in passionately,'' said Mark Kastel, a co-founder of the Cornucopia Institute, an organic industry watchdog and farm policy group that has been tracking corporate contributions in the ballot fight. ''They feel like they've been had.''

The uproar highlights the difference between large organic brands that have driven the double-digit growth of the organic market and the smaller, independent businesses and farms that most shoppers envision when they buy an organic peach or shampoo -- companies like Nature's Path, one of Kashi's largest competitors.

Although certified organic products are prohibited by law from containing genetically engineered ingredients, organic companies generally favor the labeling law, contending that consumers have a right to know what is in the products they buy. What is left unsaid is that it may also be a marketing advantage for organic companies, distinguishing them from conventional food producers.

The parent companies, among them Kellogg, General Mills, Dean Foods, Smucker's and Coca-Cola, declined to talk about their opposition to the labeling initiative, which is on the November ballot, referring questions to Kathy Fairbanks, the spokeswoman for the No on 37 campaign.

Last week, the organization released a study it had commissioned that estimated the initiative would add $1.2 billion in costs for California farmers and food producers. Ms. Fairbanks said that the higher costs could add as much as $350 to $400 to an average family's grocery bill.

In addition, she said, the opponents believe the labeling would heighten what they call unfounded concerns about the safety of genetically engineered crops.

The European Union has required such biotech labeling since 1997, and companies by and large have formulated their products so that they do not contain any genetically engineered ingredients and thus do not need labeling. Also, David Byrne, the former European commissioner for health and consumer protection, has said that there was no impact on the cost of products.

But for more than a decade in the United States, most processed foods like cereals, snack foods and salad dressings have contained ingredients from plants whose DNA was manipulated in a laboratory. Regulators and many scientists say they pose no danger.

Americans, however, are becoming much more aware of the role that food plays in their health and well-being, and consequently want much more information about what they eat, including whether it contains genetically engineered ingredients as well as salt and trans fats. So far, opponents of Proposition 37 have committed roughly $25 million to defeat it, with the largest contributions coming from Monsanto ($4.2 million) and DuPont ($4 million), which have made big investments in genetically engineered crops.

Several food companies are not far behind. PepsiCo, Nestl?ConAgra Foods and Coca-Cola, which owns the Odwalla and Honest Tea brands, have each put more than $1 million in the fight, while General Mills, which owns organic stalwarts like Muir Glen and Cascadian Farm as well as popular upstarts like L?bar and Food Should Taste Good, has spent more than $900,000.

''We believe labeling regulations should be set at the national level, not state by state,'' General Mills said in a statement on its Web site.

Supporters of the measure thus far have mustered only $3.5 million from donors like Organic Valley, which has given $50,000, and Clif Bar and Amy's Kitchen, which each have put in $100,000.

genetically modified foods. That surprises no one, least of all the proponents of the law, which if approved by voters would become the first of its kind in the nation.

But the companies behind some of the biggest organic brands in the country -- Kashi, Cascadian Farm, Horizon Organic -- also have joined the antilabeling effort, adding millions of dollars to defeat the initiative, known as Proposition 37.">